Five Considerations When Justifying an Investment in ERP

The decision to upgrade or implement a new ERP system is one of the most complex and resource intensive initiatives your company will face.

The first step your organization needs to take before investing in a new or upgraded system is to make a business case for ERP. To do so, your organization needs to estimate the return on investment (ROI), total costs and benefits of the new system. You also need to identify and mitigate the risks of the ERP implementation. Documenting the business reasons for your investment in an ERP system is also critical as well as understanding the expected value to offset the cost.

Since this undertaking is huge and complex, few organizations can effectively manage this effort alone. This guide leverages Ultra Consultants' significant experience helping mid market manufacturers and distributors, such as your organization, drive an effective justification process.

The five critical areas outlined here involve:

• Performing an assessment of your company's

internal business environment

• Documenting the current state business

challenges

• Clarifying the desired state and "value" of